Rules of Origin and Manufacturing System in East Asian FTAs

　　Abstract: The East Asia region has experienced an exponential growth of FTAs in the past years. At the same time, as these agreements solidify the region’s manufacturing network infrastructure, they are also causes for concern owing to the fragile nature of regionalism in East Asia; some scholars have repeatedly highlighted the FTAs as a source of potential trade tensions. One particular focus of academic attention has been the “rules of origin” governing the complicated web of FTAs in East Asia. Contrary to common beliefs, these important components of FTAs are in effect raising the costs of transactions due to the peculiarities of the region. From the angle of “rules of origins,” this article analyzes the effects of East Asian FTA system on the region’s manufacturing system. First, the features and characteristics of “rules of origins” in East Asian FTAs are examined; second, in relation to existing theories, this article analyzes the negative effects of these rules on the region’s manufacturing system; in the third section, the article proposes some recommendations with due consideration of the current situation in East Asia.

　　Authors: Xu Xiangyun, PhD Candidate, School of Economics, Fudan University